How to Advertise On Instagram for Small Businesses

How to Advertise On Instagram for Small Businesses

Using Instagram ads for your Small Business is a no-brainer.

Not only do more than one billion people use Instagram every month, but engagement numbers for the app are way higher than both Facebook and Twitter.

That’s why we want to introduce you to Instagram advertising, which gives you the chance to aim your content to the Instagram users who count.

Let’s get started.

How to Advertise on Instagram for Small Business

What are Instagram ads?

In 2013, Instagram first began offering limited ad services after being purchased by Facebook.

It wasn’t until 2015 when they allowed advertising of all shapes and sizes. Companies and businesses found Instagram to be a huge factor for growth.

And because Instagram is integrated with Facebook Ad Manager, brands can leverage Facebook’s massive cache of user information to advertise directly to their target audience.

If that’s not enough to convince you that Instagram ads are great, here are a few numbers: 75% of users interact with Instagram ads like purchasing a product or going to a website.

How much do Instagram ads cost?

The cost of your specific Instagram ad will be unique to you. After all, not all ads are the same. the average cost-per-click for Instagram ads is around $0.70 – $0.80. This figure comes from the data of more than $300 million of ad spend.

Keep in mind that this is just the average cost-per-click. Your Instagram ad might end up costing less or more depending on plenty of factors. For example, the costs can fluctuate based on the ages you choose to target.

Types of Instagram ads

Instagram offers five ad formats:

  • Stories ads
  • Photo ads
  • Video ads
  • Carousel ads
  • Collection ads

Each of these ad formats is woven into users’ Feeds and Stories and offers a non-disruptive user experience.

Instagram also offers different types of call-to-actions that can help you collect more leads. We’ll include these in the description of the ad formats.

Let’s take a look at each of these ad types and see how they work.

Stories ads

Call-to-Action Buttons:

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Call Now (video only)


Instagram Stories Ads are full-screen ads that appear in between users’ Stories.

With 500 million Instagram users viewing Stories every day, you will receive the potential to reach a massive audience with your ad.

Stories ads, you can target your audience and select how often they see your ad. Because Stories will expire after 24 hours and they’re the ideal format for sharing limited-time offers and promotions.

Small businesses can also take advantage of all Instagram Stories features such as adding face filters, video effects, and text to create fun and creative promotions.

This allows you to make Instagram Stories ads that look and feel like your normal posts which creates a seamless experience for your users. The call-to-action takes the form of a swipe-up feature that takes audiences directly to your website from your Stories ad.

Photo ads

Call-to-action buttons:

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Get Showtimes


Photo ads allow brands to showcase products and services through awesome and compelling images.

If you’re already crafting good visual content, Instagram photo ads allow you to share it with even more people.

One example of this comes from Parachute Home, a home linens business. They successfully promoted a 60-night trial of their bedding with a “Shop Now” call-to-action button.

Parachute’s Instagram posts also have a distinctive look and feel. They created this by often displaying their products in authentic, beautiful bedroom spaces—and their photo ads were consistent with this style.

The ads were targeted to men and women aged 18 to 54, with audience profiles based on their core customers’ profiles.

The result? A 3.7x return on advertising spend, and a click-through-rate that was twice as high as their ads on other platforms.

Businesses can borrow Parachute Homes’ strategy by creating Custom and Lookalike Audiences on Facebook Ads Manager.

Video ads

Call-to-Action Buttons:

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Call Now

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Instagram users love video.

In fact, time spent watching videos on Instagram was up more than 80% year-over-year in 2017.

And Instagram has taken notice. That’s why they’ve made it easier than ever before for advertisers to utilize videos for their brands.

One great example of a successful video ad campaign comes from Lionsgate UK for their film “La La Land.”

To promote one of the biggest movies of the year, Lionsgate UK team knew that they had to target a younger audience (age 18 to 24). But younger people are mostly unfamiliar with big Hollywood musicals.

Luckily, the team knew that Instagram users were drawn towards themes like romance, travel, and fashion. They used these themes to create 10 short, bite-sized videos. Then they targeted their exact audience.

The results were astounding:

24 point increase in ad recall

8 point increase in brand awareness

4 point increase in movie viewing intent

12 point increase in movie viewing intent among females

Check out the case study on the successful ad campaign here for more.

Carousel ads

Call-to-action buttons:

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Call Now


Carousel ads allow users to swipe through a series of images or videos (like a carousel) with a call-to-action button to redirect them directly to your website.

They do a number of cool things:

Highlight multiple products

Share a multi-part story

Dive deep into a single service in up to 10 images or videos

Kayla Itsines, the founder of fitness empire Bikini Body Guide, utilized a series of video carousel ads to raise awareness and downloads of the workout app Sweat: Kayla Itsines Fitness.

The carousel format allowed her to display short fitness sequences showing how users could exercise anywhere (and anytime) with the app.

The campaign was targeted to women aged 18 to 42, reaching 6.4 million people and leading to an incredible 21-point lift in brand awareness.

Carousel ads are perfect for a brand that wanted to show the versatility of its content and would be a good fit for other brands with diverse creative assets, like food and fashion companies.

Call-to-action buttons:

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Introduced in early-2018, Instagram Collection ads are a relatively new addition.

The way they work is simple: When users see an ad from your brand, they’ll have the option to purchase products directly from the ad.

They combine the power of photos, videos, and direct-response marketing all in one powerful advertisement.

One brand that used Instagram Collection ads to great success was Zattini, a clothing e-commerce store.

Using Collections, they showcased their products and discounts with the goal of increasing sales. The result was a 6.3% increase in conversions. Their Collections ad also came at a 41.9% lower cost compared to other ad formats.

To help you decide which Ad style you’d want to try, we prepared this segment for you.

What is my goal?

Your social media goal is the North Star for all decisions when it comes to your Instagram ad campaign. It will help you decide what to pursue and, more importantly, what not to pursue.

For example, if you’re trying to raise brand awareness, you want to avoid something like Collection ads, as they directly sell products. Instead, you should choose a photo or video ad with a CTA that directs to your website. Doing this not only helps you with your sales but will help you elevate your brand through captivating content.

But if you’re simply trying to sell products, you will want to use a Collections ad that will allow users to purchase products directly from the ad itself.

Or let’s say you have multiple products that you’re launching and you want to show them off. A Carousel ad will be perfect for this as you can show users several captivating images of your products.

No matter what ad format you choose to go with, make sure it’s in line with your goals

Now that you know the different types of Instagram ad formats—and how to choose a good one—let’s jump into how exactly you can launch a successful Instagram campaign.


There are a lot of features over social media apps and websites that are useful for your business and Instagram is one of these.

If you decide to include Instagram in your advertisement platform, there is no question that it will significantly affect your business in a positive way.

If you need digital marketing services for your company, or if you own a small business and need a digital marketing agency, contact us at Logical Assembly.

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